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US Dollar Index Rose by 0.6%

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US Dollar Index rose by 0.6%

The US Dollar Index measures the strength of the dollar against a basket of currencies. It rose on November 20, 2015. The rise was mainly due to the bullish comments from the Fed members. The US Dollar Index rose to a high of 99.7 towards the end of the day. The weakening euro also helped the index reach a positive trajectory. The euro accounts for most of the US Dollar Index.

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FOMC members guided the dollar upwards

The Fed’s vice chairman, Stanley Fischer, commented—at the conference organized by the San Francisco Fed—that the Fed has done everything to prevent surprising the markets in case of a rate hike decision. He also mentioned that the emerging markets’ central banks think that the Fed should go for the hike. Other Fed members, Dennis Lockhart and John Williams, came out with hawkish statements due to the currency’s upward movement.

Impact on the market

Regarding the ETFs, the PowerShares DB US Dollar Bullish ETF (UUP) rose by 0.70% on November 20, 2015. Also, the WisdomTree Bloomberg US Dollar Bullish Fund ETF (USDU) encompasses developed economies as well as emerging market currencies. It rose by 0.31%.

The banking ADRs (American depositary receipts) were trading on a negative note on November 20, 2015. JPMorgan Chase (JPM) fell by 0.18% while Citigroup (C) fell by 0.56%. Wells Fargo (WFC) also followed a similar trajectory and ended lower by 0.27% for the day.

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